According to The Senior Citizens League (TSCL), Social Security beneficiaries can expect a 2.2% Cost-of-Living Adjustment (COLA) in 2026, slightly lower than last year’s 2.5%. This prediction follows the Bureau of Labor Statistics’ report that the Consumer Price Index decreased to 2.7% for February from 3.0% in January.
Starting March 27, 2025, the Trump administration will implement a stricter policy for collecting Social Security overpayments. When accidental overpayments occur, the Social Security Administration (SSA) will withhold 100% of future benefits until the overpaid amount is recovered. This policy replaces the previous rule that limited withholding to 10% of benefits or $10.
The SSA collects approximately $4.2 billion in overpayments annually while maintaining an average balance of $22.8 billion in uncollected overpayments.
TSCL advocates for more reasonable collection practices. Their analysis suggests that if the government recovered all overpaid benefits, seniors could receive a one-time payment of about $495, followed by potential annual benefit increases of around $77.
Shannon Benton, TSCL Executive Director, expressed concern about the immediate 100% reduction in benefits: “The clawback of payments is especially unfair to seniors who do not have external support to help manage their finances and track their benefits.”
TSCL previously supported the Social Security Overpayment Act, which would have extended the grace period between notification and collection from 30 days to 120 days.
